China's retail and e-commerce company Alibaba Group Holding Ltd. is developing a system-on-chip for its X-Dragon cloud server, a spokesperson confirmed to S&P Global Market Intelligence following media reports.

The chip is aimed at boosting the efficiency of Alibaba's cloud server. Alibaba's chip business unit Pingtouge is leading the project.

The spokesperson did not disclose further details including when the integrated circuit will be in use.

A system-on-chip integrates computer components, including processor and memory units, and features in servers, computers and handsets. Alibaba revealed its X-Dragon server in May 2018. It facilitates the migration of client data to the cloud.

Alibaba's Pingtouge debuted its first processor July 25, aiming to boost computation efficiency for applications such as artificial intelligence and internet of things.

The company bought China's only processor IP core provider, Hangzhou C-SKY Microsystems Co. Ltd., in May 2018 and combined it with its semiconductor research unit Damo Academy to found Pingtouge in September 2018, according to technology news site Pandaily.